Full Press Release Details
TO CONSOLIDATED FINANCIAL STATEMENTS
OF CANADIAN GAAP TO US GAAP
consolidated financial statements of the Company are prepared in accordance with
Canadian GAAP, which, in most respects, conforms to US GAAP. In
preparing these interim statements the Company has included all adjustments
which it believes are necessary for fair presentation and are all normal and
recurring in nature. Significant differences between Canadian and US
GAAP are as follows:
| Notes | Three Month Period Ending March 31, 2008 $ | Three Month Period Ending March 31, 2007 $ | Cumulative from inception on April 2, 1998 to March 31, 2008 $ | |||||||||||||
| Net loss for the period- Canadian GAAP | (2 | ) | 3,957,646 | 3,394,373 | 106,514,397 | |||||||||||
| Amortization of intellectual property | (1 | ) | (90,375 | ) | (90,375 | ) | (3,524,625 | ) | ||||||||
| Future income tax recovery | (1 | ) | - | - | 1,115,000 | |||||||||||
| Net and comprehensive loss for the period - US GAAP | 3,867,271 | 3,303,998 | 104,104,772 | |||||||||||||
| Basic and diluted loss per common share - US GAAP | (0.09 | ) | (0.08 | ) | - |
no differences between Canadian GAAP and US GAAP in amounts reported as cash
flows from (used in) operating, financing and investing activities.
TO CONSOLIDATED FINANCIAL STATEMENTS
sheet items in accordance with US GAAP are as follows:
| March 31, 2009 | December 31, 2008 | |||||||||||||||||||
| Notes | Canadian GAAP | US GAAP | Canadian GAAP | US GAAP | ||||||||||||||||
| Intellectual property | (1 | ) | 90,375 | - | 180,750 | - | ||||||||||||||
| Future income taxes | (1 | ) | - | - | - | - | ||||||||||||||
| Contributed surplus | (1 | ) | 13,361,438 | 10,861,438 | 12,197,801 | 9,697,801 | ||||||||||||||
| Deficit | (1 | ) | 106,514,397 | 104,104,772 | 102,556,751 | 100,237,501 |
property of $2,500,000 recorded as a consequence of SYNSORB's acquisition of the
Company's shares comprises intangible assets related to research and development
activities. Under US GAAP, this would not be capitalized on
result of removing the $2,500,000 from intellectual property in 1999 for US GAAP
purposes, the amortization of the intellectual property, the future income tax
recovery, future income tax liability and contributed surplus amounts recorded
for Canadian GAAP purposes have been reversed.
U.S. GAAP, stock based compensation expense is to be presented within the
appropriate category of expenses on the statement of loss. As a
result, stock based compensation on the statement of loss would be reduced by
$11,637 for the three month period ending March 31, 2009 (March 31, 2008 -
$19,593) and research and development and operating expenses would increase by
$11,637 and $nil, respectively (2008 - $19,593 and $nil,
respectively). Cumulative from inception stock based compensation
would be reduced by $4,780,481 and cumulative from inception research and
development and operating expenses would increase by $2,746,761 and $2,033,720,
respectively. There is no impact on the Company's net
1999, the Company entered into an agreement that assumed certain obligations
(the "Assumption Agreement") in connection with a Share Purchase Agreement (the
"Agreement") between SYNSORB and the former shareholders of the Company to make
milestone payments and royalty payments.
March 31, 2008, a milestone payment for $1.0 million will be due within 90 days
of the first receipt from an Appropriate Regulatory Authority, for marketing
approval to sell REOLYSIN to the
public or the approval of a new drug application for REOLYSIN .
milestone payment, when payable, will be accounted for as research and
development expense and will not be deductible for tax purposes.
TO CONSOLIDATED FINANCIAL STATEMENTS
addition to the milestone payment, payments may become due and payable in
accordance with the Agreement upon realization of sales of REOLYSIN . In
2003, the Company completed amendments and revisions to the contingent
obligations to its five founding shareholders with respect to these other
contingent payments. The amendments and revisions reduced the amount
and clarified the determination of potential obligations of the Company to these
shareholders arising from the Agreement and Assumption Agreement entered into in
1999. Also, on September 23, 2004, the Company reached an agreement
that further reduced its contingent payments to its founding shareholders
through the cancellation of a portion of these contingent payments from one of
its non-management founding shareholders. The consideration paid by
the Company consisted of $250,000 cash and 21,459 common shares valued at
$150,000 and has been recorded as research and development
expense. The value of the common shares was based on the closing
market price on September 23, 2004.
result of the amendments and the cancellation agreement, if the Company receives
royalty payments or other payments as a result of entering into partnerships or
other arrangements for the development of the reovirus technology, the Company
is obligated to pay to the founding shareholders 11.75% (formerly in 2003 -
14.25% and 2002 - 20%) of the royalty payments and other payments
received. Alternatively, if the Company develops the reovirus
treatment to the point where it may be marketed at a commercial level, the
payments referred to in the foregoing sentence will be amended to a royalty
payment of 2.35% (formerly in 2003 - 2.85% and 2002 - 4%) of Net Sales received
by the Company for such products.